The Washington Free Beacon reports on a new study.
Health insurance premiums for young people will rise in all 50 states under Obamacare, with an average increase of 260 percent, according to a study released Thursday.
The young and healthy segment of the uninsured is considered crucial for the Affordable Care Act to succeed. Former President Bill Clinton suggested last week that Obamacare only works “if young people show up.”
However, an analysis of premiums both before and after the implementation of Obamacare shows that 18- to 35-year-olds are likely to opt out of high rates in the exchanges in favor of cheaper penalties for not having insurance.
According to a study released by the American Action Forum, post-Obamacare premiums will average $187.08 per month, up from $62 per month in 2013, a 202 percent increase. Overall, states averaged an increase of 260 percent.
Forty-four out of 50 states saw a three-digit percent increase, and in Vermont the cheapest available premium for a 30 year-old male nonsmoker will increase by $332.69, or 600 percent.
[...]Massachusetts had the lowest increase at 9 percent, though the state is considered an “outlier” since it already had similar health care reforms put in place under former Republican Gov. Mitt Romney.
“[T]hat state’s insurance market has been subject to ACA-like reforms since 2006, bloating the premium for the lowest-cost pre-ACA policy to nearly $214, making it the highest of the 2013 premiums analyzed in this study,” the report said.
But what about the subsidies, won’t they help cover the cost of all the free condoms and birth control pills and abortion drugs?
Given the high costs of the premiums, the study predicts that even with subsidies, most of the young uninsured will opt to pay the penalty rather than sign up for health care.
Individuals between 100 and 400 percent of the federal poverty line are eligible for subsidies under the law.
Only those who earn up to 133 percent of the poverty line will have a financial incentive to join the health exchange. An individual with an income of $15,281.70 would receive a subsidy to cover 100 percent of their health care premiums.
Moving up the income bracket creates disincentives for the young to enroll. Those making $20,107.50, or 175 percent of the poverty line, will still face a $449 premium, which is three times higher than the penalty they would incur in 2014 ($103.57) if they did not purchase insurance.
An individual earning $37,342.50 will receive no subsidy at all and will face a minimum premium of $2,839, as opposed to a $275.92 penalty in 2014.
I’m pretty sure that most people who get jobs out of college will make more than $37,342.50. Petroleum engineers start at around double that income.
So, I’m thinking that the young people – especially college-educated people with jobs – shouldn’t have voted for Obama. Do you think that their teachers and professors explained to them what would happen to them if they voted for Obama? I think not. I think that their teachers and professors wanted their little wide-eyed charges to vote for more funding of education, with no performance checking, so that they could be paid more money. And the children believed their teachers and voted accordingly. This is a particularly bad deal for bright young men – the kind you might expect to be interested in marriage. Now not only have they inherited massive amounts of debt and a crappy socialist economy with no jobs, but they are being forced to buy expensive health care coverage that they don’t need and won’t use. Why? To subsidize the health care claims made by women and the elderly, who use more health care products and services.